Insiders Are Buying Up Shares Of These Penny Stocks This Month
Insider trading can be an important signal to the stock market. Today, with hundreds of penny stocks to choose from, sentiment has become a factor to account for. Sure, you’ve got your social sentiment from platforms like Reddit & Twitter.
It’s also important to have a grasp on what insiders think about the companies they work for. One gauge of that type of sentiment comes in the form of insider trading. When insiders buy or sell shares of their own companies, the market usually responds in kind.
Selling usually brings doubt; buying tends to build support. Do all penny stocks see a reaction in the market? No, but that doesn’t mean you should totally discount insider activity. In this article, we’ll take a look at a few penny stocks insiders are buying in August. Will they be on your watch list next? To see 8 More Penny Stocks insiders are buying, check out “8 Best Penny Stocks To Buy Right Now According To Insiders.”
Penny Stocks To Buy According To Insiders
- Salarius Pharmaceuticals (NASDAQ: SLRX)
- DiaMedica Therapeutics (NASDAQ: DMAC)
- GoHealth Inc. (NASDAQ: GOCO)
- SenesTech Inc. (NASDAQ: SNES)
Salarius Pharmaceuticals (NASDAQ: SLRX)
One of the areas of the market that has gotten plenty of attention lately is biotech. Vaccine stocks have clearly played a leading role. However, immunotherapy companies are following closely behind. Salarius Pharmaceuticals (SLRX Stock Report) specializes in developing potential treatments for cancers and tumors. Its seclidemstat treatment is being evaluated in clinical trials for patients with Ewing sarcoma and hematologic cancers. Seclidemstat has also received Fast Track Designation, Orphan Drug Designation, and Rare Pediatric Disease Designation from the FDA for Ewing sarcoma.
Recent SLRX Stock News
One thing to keep in mind is what the company has going on this week. Salarius recently participated in the Diamond Equity Research Emerging Growth Invitational Conference this past Tuesday. CEO David Arthur presented an overview of the company’s business and highlighted recent clinical achievements. Since that presentation date, trading activity in SLRX stock has spiked slightly.
Insider Buying In SLRX Stock
Other than the latest industry presentation, insider trading has also caught the attention of the market. This month, company Director Arnold Hanish and CEO David Arthur purchased several thousand shares between average prices of $0.881 and $0.899. While these purchases weren’t as sizeable as some of the others you’ll see on this list of penny stocks, that hasn’t negated the positive response in the market since these purchases were made. Keep this in mind if SLRX stock is on your radar this month.
DiaMedica Therapeutics (NASDAQ: DMAC)
Another one of the penny stocks raising eyebrows after insider activity is DiaMedica (DMAC Stock Report). This is another one of the biotech penny stocks on this list, which has gained momentum over the last few days. The company develops treatments for neurological disorders as well as kidney diseases. Early progress this year came from its DM199 treatment, which the FDA had accepted an Investigational New Drug application for in May.
With that, DiaMedica is anticipating the start of a Phase 2/3 Study by the end of summer. DM199 will be studied as a treatment for stroke recurrence prevention. The treatment is also being studied for treating chronic kidney disease. Interim data from a Phase 2 REDUX trial was released in June. Though the company reported clinically meaningful improvement in kidney function, data was mixed overall. This is one reason why you’ll see a drop in the chart last quarter.
Recent DMAC Stock News
Like most companies right now, DiaMedica’s latest news comes in the form of a quarterly report. The company beat estimates on its earnings per share. Furthermore, DiaMedica also gave key updates on its pipeline trials. On the company’s earnings conference call, Rick Pauls commented on the company’s near-term plans.
“Our near-term focus, our IND application to the FDA for an adaptive Phase 2/3 clinical trial of DM199 was accepted by the FDA earlier this year in mid-May. Initiation of the trial is on track. And we still expect the first study sites to be initiated and open for enrollment by the end of the summer. It’s also important to note that the biological activity and mechanistic signals, including blood pressure reductions in hypertensive patients in the interim data from the REDUX trial, gives us even more confidence in the potential for DM199 to improve patient outcomes following a stroke and to reduce the risk of stroke recurrence.”
Insider Buying In DMAC Stock
There was a slew of insider buying this month with DMAX stock. Everyone from its Directors to Executive Management participated. In total, more than 95,000 shares were purchase between average prices of $3.0588 and $3.2826. Even on the low end of that range, insider buys accounted for hundreds of thousands of dollars this month.
GoHealth Inc. (NASDAQ: GOCO)
Similar to DiaMedica, GoHealth (GOCO Stock Report) also suffered a recent blow in the market. Thanks to worse than expected earnings results, GOCO stock slipped into penny stock territory for the first time ever. The digital health company IPOd on the NASDAQ last year and has been working through some growing pains since then.
Recent GOCO Stock News
Earnings remain the focus for GOCO’s recent news catalyst. The company missed estimates on EPS coming in with a loss of 12 cents per share compared to what analysts expected to be a 4 cent loss. The company also reduced its 2021 guidance for EBITDA. Needless to say, that didn’t mean there weren’t a few highlights to pull from some of the commentaries in the report.
CEO and co-founder Clint Jones explained that GoHealth has managed to boost investments in its Encompass Platform. This helped give a jolt to revenue by $17 million thanks to new services offered. “Given the 50% top-line growth over the first six months and continued strength in the market, we have raised and tightened our revenue expectations for full-year fiscal 2021,” said Jones.
Insider Buying In GOCO Stock
CEO Clinton Jones and Chief Strategy Officer Brandon Cruz, through NVX Holdings, purchased over 250,000 shares of s GOCO stock between average prices of $4.668 and $4.685. These purchases accounted for $1.1 million in purchases this month.
SenesTech Inc. (NASDAQ: SNES)
Rounding out the list is SenesTech (SNES Stock Report). The company has a unique model in that it focuses on rodent fertility control. SenesTech’s EPA registered rat contraceptive, ContraPest, has experienced significant growth over the last year, as you’ll soon see. The company is also actively launching branding campaigns in select markets.
Recent SNES Stock News
Earnings, earnings, and more earnings are at the center of attention right now for those looking at SenesTech right now. Revenues for the second quarter were just released and showed an increase in Q2 revenues of 125%. This was compared to the same period last year. On top of that, there was an 82% jump in sequential quarterly revenue, with year-to-date figures coming in 130% higher compared to the same timeframe in 2020.
CEO Ken Siegel explained that the company continues “to gain significant traction within California which represented nearly a third of our year-to-date 2021 sales following the state’s recent actions to restrict use of certain SGARs, expanding the opportunity for ContraPest’s non-lethal and effective approach to pest control. In the next several weeks, we will launch an aggressive new multi-channel sales and marketing campaign that we expect will dramatically expand sales over the next several quarters.”
Insider Buying In SNES Stock
While not as frequent, the single Form 4 filed this month showed substantial buying by company director Jacob Leach. In total, Leach purchased 150,000 shares of SNES stock at average prices ranging between $1.4957 and $1.5419, totaling over $220,000.
Should You Buy Penny Stocks Alongside Insiders?
As noted above, insider activity can send a message to the market. But deciding to pair your trading activity with insiders is another story. Case in point, if an insider purchases hundreds of thousands of dollars worth of shares, that doesn’t mean to go all-in with your entire savings account. Selling also doesn’t always suggest that a company is going to fold. It’s important to note insider activity, but it’s more important to understand why it may be taking place.
What’s going on with the company itself? Has something changed in the business model? Are there upcoming events that may be a source of speculation? These are all good questions to ask when looking into why insiders might be buying shares. To see 8 More Penny Stocks insiders are buying, check out “8 Best Penny Stocks To Buy Right Now According To Insiders.”